PRANEET ENVIROQUIPS PVT LTD Vs. SANDEEP PAPERS LTD

JUDGEMENT

(1.) M/s. Praneet Enviroquips Private Limited has filed the present petition under Sections 433 and 434 of the Companies Act, 1956, seeking winding up of the respondent-company (M/s. Sandeep Papers Limited ).

(2.) The relevant facts alleged are that the respondent-company placed order on September 16, 1996, for the supply of Praneet Lamellar Decanter 30 cubic metre/hour for a total price of Rs. 2. 50 lakhs. In pursuance of the purchase order dated September 16, 1996, the machine was fabricated, erected and installed at the site of the respondent. Intimation regarding despatch of the machine was sent. Thereafter the machine was commissioned and performance of the machine was observed by deputing the engineer/technician of the company. The respondent-company failed to make payment for the machine and prolonged the issue to remit the payment. An undertaking had been given by the respondent-company that payment would be made after the trial run of the machine.

(3.) The petitioner contends that it is a creditor to the tune of Rs. 2,77,750 including taxes and despite repeated demands, the respondent-company had not made the payment. With a motive to delay the payment, the respondent-company filed a civil suit which was not maintainable. The respondent prayed for a decree of declaration to the effect that the petitioner-company is not entitled to recover the price of the equipment. When the petitioner came to know of the said suit, it filed an application under Order 7, Rule 11, Code of Civil Procedure for rejection of the plaint. That is pending. Asserting that the respondent has failed to make the payment of the debts, the application referred to above had been filed.